The Prime Minister was touring the Wallsend-based firm and meeting workers as part of his flying visit.

Swans is currently working on a #130 million order for the MOD but has also guaranteed a massive slice of the huge #2.7 billion contract to build an aircraft carrier.

This is expected to ensure around 3,000 jobs for the Tyne over the next five years and could have a similar impact on the region's economy as Nissan's Washington plant.

Jaap Kroese, chairman of Swan Hunter, said the Prime Minister's visit represented a massive vote of confidence in the Tyne.

He said: "Tony Blair has always believed in us and it is fantastic that he has made time to come and see us at first hand.

"Under a Tory government this legendary yard was closed down in 1994. Today a Labour Prime Minister gets the chance to witness a booming firm that is a credit to the region and the country. I think that shows the difference he has made.

"We have already landed a massive MOD order and are virtually guaranteed a huge slice of any future aircraft carrier.

"That new deal will represent around 3,000 jobs by the time it is in full-swing in 2008. That is a fantastic guarantee for the future of the Tyne.

"He is coming here at a great time, especially with Newcastle flying high in the Premiership. As a Newcastle fan I am sure he will be asking the lads what they think their chances are of winning the title."

The Prime Minister was expected to spend around an hour at the Wallsend site, speaking to workers at the company's massive dry dock.

The race to win the massive #2.7 billion aircraft deal is down to two shipbuilding groups - BAe Systems and French company Thales.

Swan Hunter is confident that work for at least one of the ships will come to the North East as it is working with both bidding groups.

Kevin Curran, regional secretary of the GMB union, said: "We are delighted that Mr Blair has been able to come and witness the rebirth of the Tyne for himself.

"This is a perfect example of how the North East working together can really go forward.

"We have now got to build for the future, but Swans shows that shipbuilding on Tyneside is on the up.

"I have stressed to the Prime Minister the importance of the yards to our region."

Swans is currently working on the #130 million defence order to build two Alternative Landing Ship Logistic (ALSL) vessels, creating four years' work for 2,000 people.

As soon as this ends it is expected that the aircraft carrier deal will be up to speed and mean a constant supply of jobs across Tyneside.

Swans has introduced a fast-track training scheme to encourage the entry of new workers.

Members of the programme take just two years to complete their apprenticeships. A dozen have currently signed up but shipyard bosses say they hope to increase that to 50.

Mr Kroese added: "We will need 3,000 highly skilled workers by 2008 and this training scheme will be vital. We are committed to the youth of the region and this shows we have a huge role.

"Tony Blair is committed to this project and understands how vital it is to provide jobs.

"He has received a lot of bad press about his travels to Africa and Afghanistan but this shows he is very focused on supporting industry and Britain."

Deputy leader of North Tyneside Council Eddie Darke, who is a former union rep at Swan Hunter said: "In the 31 years I worked at Swan Hunter, no Prime Minister ever came to visit.

"It is a great morale boost and I hope it leads to greater things.

"At the moment everything is building up. They are building the dry docks in readiness for a big order. The whole year is pretty busy on the Tyne.

"You have to give Jaap Kroese great credit for what he has done for shipbuilding here."

Business chiefs also welcomed Mr Blair's visit.

Bill Midgley, ex-chairman of North East Chamber of Commerce, said: "The Tyne has an excellent reputation. There are some world-class firms here."

Angus Hynd, assistant director of the North CBI, said: "I think businesses generally think the needs of the region are not very high up on the Prime Minister's agenda, but it is the second time he has been on Tyneside in a matter of weeks. I saw him talk in Newcastle last month."

No lose situation in new ship deal

The Chronicle revealed in November that Swans had secured a massive share of the #2.7 billion aircraft carrier contracts.

Bosses at the Wallsend yard said they were in a no lose situation after negotiating with BAe and Thales over the deal.

Both have won #30 million contracts with the MOD to draw up final plans for versions of the Future Aircraft Carrier.

Minister's have yet to decide exactly what ship to go for and whether they will order one or two. Because of the need to allow fighter aircraft to take off and land vertically the weight of the two ships will be at least 40,000 tonnes, but could reach as much as 60,000 tonnes.

The current Invincible class ships, Tyneside built HMS Ark Royal, HMS Illustrious and HMS Invincible, are each just over 20,000 tonnes. The length of the new ships will range from 250m (820ft) to 340m (1,120ft) - that's longer than 10 St James's Park football pitches. You could also stretch out more than eight Grey's Monuments along the flight deck.

The aim is to replace the Royal Navy's current three carriers with two larger ships, to enter service in 2012 and 2015. The final contract will be awarded late next year or early 2004.